Days may be getting shorter with fall’s arrival, but the list of reasons to buy a home is growing. Although the spring and summer real estate markets are usually considered the “hot” times to buy and sell, there are quite a few reasons to buy a home this fall.
Historically Low Interest Rates
Mortgage rates have fallen to record lows several times this year and have encouraged many first-time home buyers to jump into the real estate market. With the average 30-year fixed rate mortgage hovering around the 3% range, that’s 13% points lower than the high in 1981 when the annual fixed-rate average was more than 16%. After the 2008 recession, fixed-rate mortgage rates were around the 5% range the following year. Lower mortgage interest rates mean less money paid to interest and lower monthly payments. With a lower payment, you may also be able to afford more house.
Competition for houses traditionally dips a little in the fall as there tends to be less home buyers looking for homes in the fall. In a typical year, home buyers who have school-age children may no longer be shopping when school starts back up. With fewer buyers, it’s a great opportunity to make an offer and find a deal.
Motivated Sellers Looking to Sell this Year
Some sellers will want to take advantage of tax benefits – gains or losses – during the tax year by selling quickly. If you can find a home and close before December 31st, the seller may have more incentive to take your offer.
Tax Advantage Breaks
There are plenty of perks to buying a home but one of the best is that you do get some tax breaks. Deductions that help lower your taxable income include mortgage interest, property tax and PMI (private mortgage insurance). If you pay points to your lender as part of your new loan, you may also get a deduction. You can also check to see which home improvements are eligible for a tax credit with the Federal Government.
Take Advantage of Rising Home and Rental Prices
Although mortgage interest rates have hit all-time lows, the same cannot be said of home prices. In Texas, home prices have been on the increase this summer. CoreLogic’s July Housing Insight report showed the Austin metro-area leading with a 6.5% price increase in July compared to the year before. The Houston area experienced a 3.94% increase while San Antonio increased by more than 5%. The bottom line is that home and rental prices tend to appreciate over time and waiting may only increase the amount you have to spend later.
If you’re serious about buying a home, you can be in your dream home before the start of the New Year!